Understanding Agribusiness Innovation and Transformation Through Evolutionary Economics: Evidence from Three Diverse National Innovation Systems

This study investigates the dynamics of agribusiness innovation and transformation in Albania, Bangladesh, and Ethiopia using an evolutionary economics framework. Employing a sequential mixed-methods design, it integrates qualitative data from over 600 semi-structured interviews with quantitative evidence from 75 firm-level surveys. Innovation is conceptualized not as a linear or technology-driven process, but as a co-evolutionary outcome of institutional routines, policy environments, and feedback mechanisms shaped by historical and cultural path dependencies. The findings reveal significant heterogeneity in innovation trajectories across countries. In Bangladesh, adaptive governance, robust digital infrastructure, and multi-actor coordination enhance responsive learning and innovation despite high and frequent levels of disruptions, politically and environmentally induced disasters. Ethiopia demonstrates high institutional coherence but limited adaptability due to weak digital integration and constrained horizontal feedback. Albania, by contrast, shows fragmented governance and volatile policy frameworks, resulting in disjointed and unsustainable innovation practices. These contrasts highlight the primacy of institutional diversity over technological availability in shaping innovation outcomes. The study extends evolutionary economic theory into agricultural development contexts in low and middle-income countries (LMICs), showing how firm behavior, market signals, and institutional feedback are interdependent. It concludes that building robust agribusiness innovation systems requires a systemic and adaptive approach, emphasizing learning networks, digital infrastructure, and responsive policymaking to navigate ecological and technological transitions.